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V0578-16 11 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Swiss pension taxed in Spain as income from work, except under double taxation treaty

A Spanish resident asks whether a Swiss public pension paid by a Swiss public institution is taxable in Spain. The DGT responds that, generally, such pensions are considered income from work in Spain, unless the conditions of nationality and public origin are met for taxation in Switzerland.

The question raised

Whether the pension received from Switzerland constitutes income subject to taxation in Spain under Personal Income Tax.

The DGT's ruling

As a resident in Spain, the taxpayer is taxed on their worldwide income. According to the Spanish-Swiss Convention, pensions from previous employment may only be taxed in the State of residence. However, if the pension is a public remuneration paid by the Swiss State or its entities to a Swiss national for services rendered, the taxing power lies with Switzerland. If these conditions are not met, the pension is taxed in Spain as income from employment.

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